Company switches gears and looks into biofuel additives


By RICHARD DUPLAIN duplain.richard@dailygleaner.com Published Saturday January 19th, 2008 Appeared on page A6

---

Locally produced biofuels are too expensive for New Brunswickers, according to the province's only integrated biofuel producer.

But biodiesel additives are proving to be well worth the pennies it costs to use them.

Ray Carmichael is the business development manager for Eastern Greenway Oils Inc., of Waterville, New Brunswick's only totally integrated biofuel producer.

He said unfair competition from the U.S., high taxes and high fuel prices have a significant negative effect on domestic production of biofuels, forcing his company to look into the production of biofuel additives.

The manager of Fredericton's fleet of 27 diesel-burning buses said using a biodiesel additive costs taxpayers less than a penny a litre and payback is increased fuel efficiency, a cleaner-burning engine and cleaner air.

Randy Perkins said the city conducted a pilot study last year and quickly realized savings and a dramatic decrease in harmful emissions.

"We are very pleased with the results and we are going to proceed to use the additive from Eastern Greenway Oils in all 27 buses," he said.

Perkins said the biodiesel product called 4-Plus Premium will be added to the buses' fuel supply by the end of February. He said a metering device will ensure the product is adequately mixed with the diesel.

The high production costs forced the company to develop a value-added line of products for the domestic market.

"World oil prices are driving up the costs of production," Carmichael said.

His company developed a process in which sulphur, the lubricating component in diesel fuel, is replaced with oil produced from canola seeds.

The process eliminates sulphur dioxide, a greenhouse gas, that's produced when diesel is burned.

Last year, Eastern Greenway Oils received a grant of $300,000 over two years to develop a process to eliminate sulphur from diesel fuel.

The company is totally integrated because shareholders grow the canola used in the production process.

"We are a field-to-tank producer, and the only one, too," Carmichael said.

He said federal and state subsidies in the U.S. means a litre of biodiesel can be imported and sold here for about 85 cents. His company can produce the same produce for sale here at $1.40 per litre.

"No one wants to buy a biodiesel product at that price," Carmichael said.

"We've found that consumers don't want to pay the premium, even if it will help save the environment.

"We're producing enough to heat our own plant," Carmichael.

He said it's cheaper to grow the canola, sell it as an export product and then buy the finished product from a U.S. manufacturer.

Carmichael said Canadian governments should step forward and provide similar subsidies to those provided to U.S. manufacturers.

The tough economic challenges facing Eastern Greenway Oils won't be resolved soon, he said.

"We are still very active producing and distributing our diesel fuel additive," Carmichael said.

The diesel additive eliminates carbon monoxide and heavy particles contained in black smoke often seen coming from buses.

"We've been hard at work on our value-added lines," Carmichael said.

"Soon we'll be producing industrial grade oils and fluids and domestic products that will safely clean paint brushes as well as a biopesticide made from mustard seed."

The federal government recently announced it would provide a $800,000 grant to BIO-D Energie Inc. to establish a biodiesel processing plant in Clair.

Bio-D Energie, in partnership with Belisle Feeds of Quebec, already produces the raw material for a biofuel and sends its waste mash to Quebec for processing into animal feed.

The federal government also announced a $61,000 grant to the Centre of Excellence in Agriculture and Biotechnological Sciences in Grand Falls.

It will figure out a cost-efficient technology to transform starch from waste potatoes and grain into lactic acid for use in biodegradable plastics and other packaging.

"Agriculture is an important sector in northwestern New Brunswick and we are pleased to support innovative initiatives like these projects," said Robert Theriault, a director with the New Brunswick Agricultural Council.

He said the programs are designed to be flexible and responsive and are administered by industry leaders who understand regional needs in the province.